The Dividend Snowball: How Dividends Multiply Your Money

Great video

I love that you posted some stocks in the energy sector recently, please if you can make videos on more decent companies offering dividends outside the financial/Reit sector that are north of 5 % , that would be sweet. Consumer staples and transportation are rough to find either A high yielding non struggling companies or consistency through all market types as far as transportation goes.

A flaw with this calculator is that for the Dividend yield it assumes that the Dividend yield will remain constant with the share appreciation. Meaning say a stock is 100$ and the dividend yield is 5% and the stock appreciates to 110$ this calculator assumes that you will still be paid 5% of 110 but that’s not the case, because as shares appreciate the yield goes down unless the company raises their by the same amount

Get out of the debt snowball first and then create the dividend snowball :)

in my country (Ger) you can only get stocks via reinvest, if the dividend surpasses the price of one Stock, otherwise you get cash...

Alan and his channel has been the single most significant source of info allowing me to return to the stock market and achieve success (I had purchased mutual funds from year 2000 on and over the period of more than 10 years, I made absolutely NO money and hence vowed to NEVER invest in the market ever again). I started out two years ago, and had my first full year of investments in 2023 to calculate my annual earnings, and each of my accounts with exception of the Energy account earned me over 11%. That is absolutely amazing as I never would have expected more than 8-9% in the first full year. I DO NOT recommend automatic reinvesting of your dividends, but prefer to allow them to build up each month and then monthly I reinvest my earnings based on what is the best deal, which stocks are doing well and earning good dividends, and avoiding purchase of stock that is very high priced. I am of retired age and therefore will be drawing from this account in just a few years, but it's hard to imagine how well I could have done had I been doing this since year 2000, not to mention if I had stated in my 20's or 30's. The really good news is that today unlike the past you can open an account at a brokerage just like at a bank, populate the account and start investing without a bunch of fees to gobble up your earnings as is the case with the ripoff 401k mutual fund debacle.

5% annual growth for O is VERY generous

You have been a great resource for helping me find companies to invest in but also to start building my dividend portfolio to provide sustainable income into the future. Seriously, I really appreciate the work that you're doing

It is worth noting, that over a 30 year period. Simply owning a growth fund would be a better idea. Using something like the 4 to 5% rule, you will achieve your desired level of income, faster, and reach financial independence sooner.

Of course, the market could perform differently in the future, but after over 100 years, there is no reason to believe that it will.

I didn't discover dividend investing until my late 50s, when I had to manage my elderly father's account. Now I wish I could go back in time and tell my 25 year old self to invest $100/month and don't stop. I've opened a Fidelity account but 10 years pales next to what you can do in 30, 35 years.

Taxes are surprising me at the end of every year

Dividends are great until the stock drops so much it eats up all the dividend gains!

What app for dividend tracking was shown?

Enjoy these video's on what the smart money is buying. If you run out of smart money investors, another option would be to look at top holdings from successful ETF's. And if that doesn't appeal to you, there is always; you can look at the not-so smart money. My top five holdings are O, ABBV, KO, PG and PEP. :)

Nice basic video for dividend investing motivaion.
I invested in Realty income half a year ago, very happy with the investment, but I didn´t get the dividend in march.
I´m very confused.

Greetings from Germany

What is the website used in dividend calculator?

Thanks for the informative video..... I think BTC and ETH are more likely to retest resistance up and then move down. But as always, the situation changes every day and all we can do is trade responsibly, monitor the markets and re-evaluate our strategies often. I want to thank you John Preston for being my source of crypto education as I comfortably earn 15.7 BTC......

Dont waste your money on anything below 3% rate.😂 You put soo much money into it you would never get back. Same with the bank CDs they love 4% nowadays, until people stopped using it.😂 why is it not 18-28% like the credit cards? MFs waste your time, and effort giving them your earnings. Play hard to get, get a higher rate anyway. The company's play it hard for their money. Why shouldn't you.😊

I think, for young investors, who are putting money away in investments and don't need them anytime soon, growth snowball is more effective than dividend snowball.

Curious, with alot of my investments that pay Div's at close to all time highs, why automatically reinvest the Div's? I shut off the auto reinvest and save the Div's for when the stock or etf has a bad day (dip), then use the Div's to buy more at a cheaper price. Yes I understand this would work well for a passive investor, but do any active traders really auto reinvest in this situation? Still new to this but always learning. If I'm missing something, let me know. Thanks for the Vid!

Warren Buffett acquired the position in Coca-Cola for Berkshire Hathaway in 1988 for $1 billion and never bought more or sold the position. Today Coca-Cola now pays about $736 million in dividends to Berkshire Hathaway. Think about that.

In germany, DRIP is not possible... there is no broker or bank offering that. So I have to reinvest manually. Sucks, hope we get DRIP too some day. Then its realy "set and forget".

How’s your ACRE snowball going?

Good video, that's why I like dividend investing.

One topic that people often don't mention in dividend investing is that as the price goes up over time, it also goes down in peaks and valleys. So when it goes down, your drips have a higher yield and thus buy more shares with the money. When the price returns to the peaks, you now have more shares than you would have if the price went up at a linear rate. Therefore each roll of the snowball picks up more.

Reach out to Warren Buffet, DB. See if he'll donate $1 million to each of your subscribers' dividend portfolios. If he's gonna make $6 billion in the next year in dividends, this would be a drop in the bucket for him, but life changing for us.

It’s a marathon not a short track race

How can be that Buffet hold div. Stocks with div. less than inflation lvl.?are retailers cant efford this?

Overall, 51% of traders think this year would favor stocks, mutual funds, and other equity-based investments, despite Treasury yields and other safer cash-like investments paying big. I’m looking for opportunities in the market that could fetch me $1m ahead of retirement by 2025

I think it might not always be the best to reinvest dividends to exactly the stock they came from. The share price at one point might be too high to get a meaningful yield out of it. That's why I redecide monthly into what stock the payments go into. I usually look out for undervalued positions, but not exclusively.

The thing to me is, if you invest and have other income outside of dividends then you will be able to live off dividends without selling. Which means you can pass that on to your kids which will give them a leg up in life. $52k dividends received in 2022.

I wish more people understood this.

Money makes money

If you start with 0 $ it s long way …

Great video, thanks for posting it.

I would be happy if i had 500 k at a start

FYI - Track Your Dividends has given me bad/wrong numbers. I ended up canceling my paid subscriptions due to their tendency to provide me with bad/incorrect numbers.

Thanks for sharing such a brilliant information

Look like everybody brainwashed....this what GPT answer me: Using the net percentage margin, which represents the difference between expenses and dividends, can indeed provide a clearer picture of the actual profitability of an ETF after accounting for expenses. However, not all analysts may use this metric for various reasons:

1. *Different Metrics:* Analysts may prefer to use different metrics depending on their investment strategy, objectives, and the specific factors they consider most important. Some may focus more on total return, while others may prioritize expense ratios or dividend yields.

2. *Standard Practices:* There may not be a standardized approach across all analysts and investment firms. Each analyst or firm may have its own set of preferred metrics and methodologies for evaluating investments.

3. *Complexity:* While the net percentage margin can provide valuable insight, it adds another layer of complexity to the analysis. Some analysts may prefer to keep their analysis simpler by focusing on more straightforward metrics like expense ratios and dividend yields.

4. *Disclosure:* Not all ETFs may disclose their net percentage margin, making it difficult for analysts to consistently use this metric across all investments.

However, for investors concerned about the true profitability of an ETF after expenses, the net percentage margin can be a useful metric to consider alongside other performance indicators.

My dividend journey began when I realized that two particular expenses in my budget were always going to go up and never go down. The two expenses were taxes and insurance. I realized that the dramatic rise in both will need some added income. So, I started buying shares paying dividends. I can now see that this will be the path I need to take to make sure those two expenses will not overtake my future income.

Why ever? I mean, Every Dividend video says. You could earn if you have 10k and put it into this Blank in 10 years. Knowing that 90% of starting investors don't have any, it's close to 10k. Then they tell you, hey, it's not a good idea to put it all in the same stock in the same video. Say If hot well of Dont try Dividend investing. Make fill hopeless. When the video is about actually getting into it, they all destroy you before they even get about 50% away into the video. I love this channel, but it does the exact same thing.

Why don't any of you guys do a video about the guy starting with 500? If you can put in like $10 a week, why not go out and eat with your friends? Or maybe even five dollars a week, and just by a fraction of her share, this is how the dividend can get you up to 10 K. And show how it actually can work for the guy trying to become a dividend investor.

I started with 100$ and 5$ in the account a week with Acorn. Then, every time I got a raise, I added 5$, and it inspired me not to be able to go to the convenience store and a little bit extra. I could put 20 bucks in there here and there if I made it over time and slowly got in the habit of saving the money a little bit at a time, and it would grow but only a little. Watching your video and several other people's as I was learning, I changed platforms to Robin Hood. When I finally made myself up to around two $3k. Within 1 year, taking a little bit extra from every time I worked overtime. Saving my money. I eventually got it up to 10K in less than three years. Use part of that 10K and what I saved in my account to buy my first house. Go me!

Putting me back to 3K. using dividend reinvesting and advice from this channel, I slowly got it back up to 5K as of right now. I have been learning a lot about the market through trial and error on my own and growing my financial IQ. But takes me a while to get back to 10k. Houses, which are expensive. The goal is 10k next year and half.

Are there any videos out there specifically for individuals like me who are at the beginning of their journey to becoming decent-sized dividend-income investors? It would be great to see more content that caters to our unique needs and challenges.

What would you do if you started with your first $1k or $3k? How would you start your portfolio? If you only had $10 or $15 a week that you could spend to get you in the habit of investing,. Start with something simple, not going to get coffee at the convenience store, save some money and uses that to invest. Or not go out to eat at lunch, save that little bit of money, and watch it start to grow. What could that do and how it can start your road to investing?

You know, the comparison between $KO and a double digit yielder isn’t fair. Because high yield stocks pay out 90% or more of earnings so a more fair comparison would be to collect $KO’s dividend and sell equivalent to 90% of their earnings (or cash flow) in total. Basically, it’s like reinvesting all your high yield dividends except 2% or whatever KO pays. A rule of thumb is to compare dividend yield + annual growth rate and whichever is higher is the better investment to live off of. Maybe this is harder to explain via comment…

Really where are investors putting their cash? Isn’t it crazy how mortgage rates continue to rise with higher imports and declining exports, but the FED is yet to lessen cost. Something will eventually break if they keep raising interest rates and quantitative tightening.

What is your strategy for dividend investing?
1) r u hub in n out for dividend?
2) buy n hold for dividend?
3) at what price you exit after ex dividend?

Additional earnings reports from major tech companies, driven by Nvidia, coupled with trader FOMO, could fuel a resurgence in market buying pressure. I'm considering investing over $300k, but I'm uncertain about risk mitigation strategies.

Good stuff, thanx !

Dividends are what got me into investing in the stock market. The thing to me is, if you invest and have other income outside of dividends then you will be able to live off dividends without selling. Which means you can pass that on to your kids which will give them a leg up in life. Have over $600K in my portfolio as I bought a lot of dividend stocks before, I'm buying more now, and I will buy more when it drops further

Weekly dividend payers hitting 115% returns.

Diversity is the key.